Grand Rapids' biggest labor union again rejects city contract offer

Cory Morse | The Grand Rapids PressGrand Rapids city worker Debbie Christopher smiles as cars honk while she pickets along Monroe Avenue NW, near Michigan Street, on Tuesday. Workers are protesting proposals in their contract negotiations.

GRAND RAPIDS — Grand Rapids’ largest labor union for the second time in a month has rejected a contract offer from the city, which union members say is an improvement over one the city made in April but still asks for too much of an increase in pension contributions.

The 740-member Grand Rapids Employees Independent Union representing non-uniformed employees showed in force at Tuesday’s City Commission meeting to urge elected officials not to give up on negotiations despite a fact finder being brought in as of Monday. The non-binding fact finding process shouldn’t prevent the two sides from continuing discussions at the bargaining table, union Vice President Joe Casalina told officials Tuesday.

“We still can work to get a contract,” Casalina said. “We don’t need to close any doors.”

City officials have been working to bring pension and healthcare costs under control, City Manager Greg Sundstrom said. He noted retiree healthcare costs were largely dealt with during previous contract negotiations but added costs continue rising while revenues shrink.

Sundstrom said it looks like Grand Rapids will receive some $6.7 million less in state revenue sharing during the 2012 fiscal year beginning July 1 and expects property tax revenues to continue declining for the next two years.

Expectations are that income taxes — the city’s largest revenue source — will be flat next year, the first time in three years they haven’t fallen.

“Our expenses are rising faster than our revenue,” Sundstrom said in justifying the proposed benefit cuts. “You would do it in your household. You don’t have a choice. You can’t wish it away.”

Neither side would discuss details of the most recent offer. Sundstrom seemed to gently chastise union leaders for making the stalled negotiations public after Tuesday’s meeting. The union’s last contract was for three years and expired in June 2010.

Kenneth Kibby, who works in the city’s sewer department, told officials the latest offer was encouraging until union members saw what they believe is a conversion from a true pension plan to a defined contribution plan that puts retirement savings at the mercy of the financial markets.

“We’re not above taking cuts but we’re asking you to consider taking little steps,” Kibby said. “We understand you have a difficult job to do.”